This topic displays definitions of common shipping terms. Use the letter links below to navigate to that section of this topic.
For carrier-specific terms, click these links:

#
3rd Party Billing - Billing option to use when the party being billed for the cost of transporting the shipment is not the recipient or the shipper of the shipment.

A
Accessorials - The additional services available with a carrier's services such as ExpressCheque or Declared Value. Also known as Special Services.
AES - The Automated Export System (AES) is the electronic way to file the Shipper's Export Declaration (SED) and the ocean manifest information directly to U.S. Customs.
Air Waybill - A bill of lading which covers both domestic and international flights transporting goods to a specified destination. Technically, it is a non-negotiable instrument of air transport which serves as a receipt for the shipper, indicating that the carrier has accepted the goods listed therein and obligates itself to carry the consignment to the airport of destination according to specified conditions. See also Waybill.
Alternate Return Address - A return address that is different from the address of the location that is sending the shipment.
Application Administrator - A user who has the Administrator privilege, having complete access to all application tasks and databases.

B
Bar code - A set of stripes of differing widths that represent encrypted data. This data can contain detailed information for such diverse purposes as identifying the contents of its container (package) and other shipping or routing details. A bar code wand or scanner can be used to read the bar code and input the information into a computer. Types of bar codes include 3 of 9, Interleave 2 of 5, Codabar, 128, UPC, etc.
Bill of Lading (BOL) - A paper document that contains information about the shipment. The bill of lading is used only with LTL (less than truckload) freight carriers.

C
C&F - Cost and Freight; term of sale or 'INCOTERM' used in international shipping. The seller is responsible for costs incurred in transporting freight to destination port. Buyer is responsible for insurance, foreign clearance/taxes, and transport to final destination. Also called CFR.
Carrier - A company that transports shipments such as DHL, FedEx, Purolator, UPS, the U.S. Postal Service.
Carrier Compliance Engine - The part of the software that enforces the rules and regulations of carriers and rates a shipment's cost or transfers that information from the carrier's server.
CFR - Abbreviation for two things - Code of Federal Regulations - U.S. Government publication governing international shipping; also abbreviation for Cost & Freight - an INCOTERM, a term describing the responsibilities of the buyer and seller in international shipments (see C&F).
CIF - Cost, Insurance, Freight; an INCOTERM or term of sale. The quoted price includes all goods, insurance and freight costs. The seller is responsible for costs incurred in transporting freight to destination port, including marine insurance. Buyer is responsible for foreign clearance/taxes and transport to final destination.
CIP - Carriage & Insurance Paid; an INCOTERM or term of sale. Buyer is responsible only for custom duties/taxes abroad and the delivery charges to the final destination. Seller is responsible for everything else. Risk of loss or damage is transferred from seller to buyer when goods have been delivered to the carrier.
Commercial Invoice - Used in international shipping, the commercial invoice is the basic statement of the seller to the buyer for goods shipped; it ideally represents a complete record of the business transaction between the exporter and the foreign importer with regard to the goods sold.
It is used as one of the primary documents in the collection process and is the main document used by foreign Customs for control, valuation and duty determination, and serves as the basis in preparing all other documents covering the shipment.
Commodity - An item in a package. Different items can be packed within a single package such as pencils, pens, and paper clips. Since international shipments require a commodity list, the shipping application requires commodity information whenever an international shipping order is created.
Consignment - A separate identifiable number of goods (available to be) transported from one consignor to one consignee via one or more than one modes of transport and specified in one single transport document. Synonym for the USA: Shipment.
CPT - Carriage Paid To; an INCOTERM or term of sale. Buyer is responsible only for insurance, custom duties and taxes abroad, and the delivery charges to the final destination. Seller is responsible for everything else. Risk of loss or damage is transferred from seller to buyer when goods have been delivered to the carrier.

D
DAF - Delivered At Frontier; an INCOTERM or term of sale. Buyer is responsible only for custom duties/taxes abroad and delivery charges to the final destination. Seller is responsible for everything else.
DDP - Delivery Duty Paid; an INCOTERM or term of sale. Seller is responsible for all transportation, customs clearance, and duties or taxes (a totally prepaid shipment).
DDU - Delivery Duty Unpaid; an INCOTERM or term of sale. Seller is responsible for all transportation and customs clearance. The buyer is responsible only for the payment of customs duties/taxes abroad.
DEQ - Delivered Ex Quay; an INCOTERM or term of sale. Buyer is responsible only for delivery charges to the final destination. Seller is responsible for everything else.
DES - Delivered Ex Ship; an INCOTERM or term of sale. Buyer is responsible only for charges at foreign port, custom duties/taxes abroad, and delivery charges to the final destination. Seller is responsible for everything else.
Drop Ship - Method used by a shipper whereby a shipment is priced and manifested by the application as if it were processed at a different location. This method is used to reduce shipping charges by taking advantage of a more favorable zone/pricing structure.
DUNS Number - Data Universal Numbering System (DUNS), a unique nine-digit number used to identify a business. You can obtain a DUNS number by visiting www.dnb.com or by calling Dun & Bradstreet at 800-333-0505. There is no charge to obtain a DUNS number.
Duty - The tax imposed by Customs on imported goods.

E
EAR - The Export Administration Regulations. All exports from the United States must comply with these regulations.
ECCN - Export Control Classification Number. All products controlled by the Export Administration Regulations have an ECCN. The ECCN is a five-digit alphanumeric number. If applicable, entry of the ECCN is required. ECCNs can be determined by consulting the Commerce Control List within the Export Administration Regulations (EAR). Because it is the responsibility of the shipper to comply with the EAR, it is strongly suggested that all exporters be familiar with these regulations.
Euro size pallet - A European sized pallet measures 120 cm long x 80 cm wide x 15 cm high. The maximum weight that can be safely sustained on the pallet is 1000 kg and the maximum height from the floor to the top of the goods on the pallet is 180 cm.
Export Controlled Information (ECI) - Contains technical data whose export is restricted by statute.
Export Information Code - Defines the export type of the shipment. Required when the SED is Included with export documents or is carrier-prepared on the shipper's behalf. Click here for the list of Export Information Codes.
ExpressCheque - special service offered by carriers whereby a shipper authorizes a driver to collect a designated amount of money from a consignee as a condition of delivery.
EXW - Ex Works; an INCOTERM or term of sale. The seller is responsible only for storage/labor at point of origin, and export packing. The buyer is responsible for everything else.

F
FAS - Free Alongside Ship; an INCOTERM or term of sale. The quoted price includes the cost of delivery when they are delivered alongside a vessel.
FCA - Free Carrier; an INCOTERM or term of sale. The seller is responsible only up to and including loading at point of origin. After loading at point of origin, buyer is responsible the rest of the way including inland transport to the port.
FOB - Free On Board; an INCOTERM or term of sale. The quoted price only applies at the inland shipping point, and the seller takes responsibility for loading of the goods on, or in, railway cars, trucks, barges, aircraft, or other transport modes. The seller is responsible for transporting goods to the specified location or port of exit if no specific location is named. The buyer is responsible for transport beyond specified point, or the exit port.
FTSR - The Foreign Trade Statistical Regulation. An FTSR exemption, provided by the U.S. Government exempts you from the requirement to file an SED for SED shipments. An FTSR exemption overrides individual commodity licenses. The FTSR Exempt number references the FTSR section in the Code of Federal Regulations (CFR), Part 15. The FTSR Exempt number cannot be 39.
FTN Broker - FedEx is responsible for clearing shipment through custom.

G
Goods Not In Free Circulation (GNIFC) - For shipments within the European Union, goods that are in free circulation allow for pre-customs clearance at the borders of European Union member nations and do not require a Commercial Invoice. Goods that are not in free circulation include the following. Shipments containing these goods require a physical Commercial Invoice:

• Goods which did not originate in the European Union (EU) and upon which duty and VAT have not been paid (Status T1)

• Goods traveling from one EU country to another, via an EFTA country, or traveling to and from the Channel Islands (Status T2)

• Goods consigned to and from Spain and Portugal, which is the subject of transitional rates of duty (Spain - Status T2E; Portugal - Status T2P)

• Shipments to non-continental and overseas territories of member nations of the EU such as Canary Islands, French Guiana, Guadeloupe, Martinique, Mount Athos, Reunion, St. Pierre, and San Marino.

• Shipments to Andorra.
  
  

H
Harmonized Code - The Harmonized Code (Schedule B number) is a number assigned to a product that universally classifies it in International trade. Numbers are assigned under the Harmonized Commodity Description and Coding System (abbreviated as HS). For the United States, Harmonized Codes are entered on the actual Import and Export documents.
Hyperlink - Text that appears in blue like this (popups appear in red) and is linked to another page in your browser. When you place your mouse over hyperlinked text, the cursor changes to a hand and the hyperlinked text becomes underlined. When you click the hyperlinked text with your left mouse button, a new page appears or a popup window appears. To go back to the previous page, click \[Back\] in your browser's toolbar. If a popup window appeared, simply click in the area outside of the popup window to close it. Some hyperlinks direct you to a section in the same topic. To go back to the top of the topic, use the scroll bar or the 'Back to top' hyperlinks as in this Glossary of Terms Help topic.

I
INCOTERM - International Commerce Term - the term of sale used to describe the responsibilities of the buyer and seller in international shipments. Examples are Cost & Freight (see C&F) and Delivery Duty Paid (see DDP). Click here for the complete list of INCOTERMS.

L
Length plus Girth - The length plus girth of a package is the length plus twice the height plus twice the width.
License Plate - The paper document attached to a package before it is shipped with Parcel and a carrier-compliant label is attached. The license plate contains identifying information such as a tracking number or bar code.
LTL (Less Than Truckload) - Refers to shipments that are less than a full truck load and can range from 1lb. to 30,000lb. Transported by a freight carrier that will rate a shipment based on ICC tariff taking into account commodity code, class, total weight, etc.

N
National Distribution Center (NDC) - A U.S. Postal Service hub for processing bulk mail. There are currently 14 NDCs in the U.S. Formerly Bulk Mail Center (BMC).
NMFC - National Motor Freight Classification - a system that groups all commodities moving in commerce into 18 classes (classes 50 through 500) according to their transportability as determined by the four characteristics by the ICC and the Department of Transportation's Surface Transportation Board. The characteristics are: density, stowability, ease or difficulty in handling, and liability. Trucking companies have different rates based on the class.
Non FTN Broker - User Designate their broker to clear the shipment

O
Overpack - Term used in dangerous goods shipments; a container such as a barrel or crate holding one or more properly packed and labeled dangerous goods packages.
Oversize - Special service offered by carriers enabling shippers to ship a package, which exceeds certain maximum size requirements.

P
PLD - Package Level Detail: an electronic manifest that is transmitted to UPS for each trailer pickup.
Prepaid Billing - Billing option to use when the carrier is automatically billed for the cost of transporting the shipment.
Pro Number - Number used to identify an LTL shipment on the Bill of Lading.

R
Rate Shop - A method for comparing rates and services offered by one or more carriers for shipping packages.
Routed Export Transaction - A transaction where the foreign principal party in interest authorizes a U.S. forwarding or other agent to facilitate export of items from the United States.

S
Schedule B Export Code - Used for commodities in international shipments, the first six digits of the code are the Harmonized System (HS) code and will appear on any document used internationally; all 10 digits appear on domestic documents such as the SED (Shippers' Export Declaration). There are millions of trade transactions occurring each year. These transactions are classified under approximately 8,000 different products leaving the United States. Every item that is exported is assigned a unique 10-digit identification code. Every 10-digit item is part of a series of progressively broader product categories. For example, concentrated frozen apple juice is assigned a 10-digit identifier that is aggregated into a broader category assigned a 6-digit identifier described as apple juice. The 6-digit identifier described as apple juice is aggregated into a broader category assigned a 4-digit identifier described as fruit juices and vegetable juices, etc. The 4-digit identifier is further aggregated into a broader category assigned a 2-digit identifier described as Preparations of Vegetables, Fruit, Nuts, etc..
SED (Shipper's Export Declaration) - The Shipper's Export Declaration (SED), Department of Commerce Form 7525-V, is used for compiling the official U.S. export statistics for the United States and for export control purposes.
The Automated Export System (AES) is the electronic way to file the Shipper's Export Declaration (SED) and the ocean manifest information directly to U.S. Customs.
The SED/AES must be submitted by a U.S. exporter whenever a shipment of merchandise is valued at more than U.S.$2,500 or requires an export license from the U.S. to a foreign destination.
The SED/AES reports all pertinent export data of a transaction including parties to the transaction, transportation details, description, Schedule B classification number, and value of the goods, as well as licensing information and certification signatures. The regulatory provisions for preparing, signing and filing the SED are contained in the Foreign Trade Statistics Regulations (FTSR), Title 15 Code of Federal Regulations (CFR) Part 30. An SED Exempt ID is a numeric code representing the section of the FTSR pertaining to the Shipment. The Exempt ID may not be 39.
Special Services - The additional services available with a carrier's services such as ExpressCheque or Declared Value. Also known as accessorials.
SWOG (Shipped With Other Goods) - Procedure whereby multiple orders are packed within a master container.
System of Record (SOR) - The System of Record database on the Parcel back end serves as the main database housing all package information. As packages are updated, the corresponding record for the package in the SOR database is also updated. The SOR database is used for all package tracking and reporting activity.

T
Third Party Billing - Billing option to use when the party being billed for the cost of transporting the shipment is not the recipient or the shipper of the shipment.
Timeout - A preset period of system inactivity. In the case of this shipping application, it is a period of time set in the Web server, after which the program automatically stops and the user must log back in.
Tracking Number - A unique number automatically generated by the shipping application, as per the carrier's specifications, to identify individual packages. The number is usually bar coded and used by carriers to trace the package through their distribution system.
Truckload (TL) - A shipment that uses the whole truck. Truckload shipments can weigh up to 42,000 lbs.

U
Ultimate Consignee - In international shipments, the foreign party who receives merchandise for end-use.
Ultimate Destination - The ultimate destination of an exported product is the location of the end-user of the product for its designated use. The ultimate destination may in fact be the country of origin if a product is being exported for repair and eventual return to the origin country.
UOM - Abbreviation for Unit of Measure.
USMCA Certificate of Origin - A uniform certificate of origin developed by Canada, Mexico, and the United States to certify that originating goods imported into their territories qualify for preferential treatment accorded by the United States-Mexico-Canada Agreement. A USMCA Certificate of Origin is required for a shipment of more than U.S.$1,000 in merchandise to Mexico or Canada when the goods qualify for USMCA origin. A USMCA Certificate of Origin may cover a single importation of goods or multiple importations of identical goods.
User - A person who has access to the shipping system.

V
Void - Term used by the application to designate transactions, which have been recorded and then later marked for removal from the file.

W
Waybill - document issued by a carrier with details and instructions relating to the shipment/consignment of goods. Typically a waybill displays the names of consignor and consignee, point of origin, destination, route, method of shipment, and amount charged for carriage. Unlike a bill of lading (BOL), which includes much the same information, a waybill is not a document of title.
Wildcard - A symbol key on your keyboard that can be used to search for information in a database or to search for files on a computer. Parcel supports the % wildcard symbol to search for information in a database.

Z
Zone - Circular area, belt or district extending about a certain point defined for transport and/or charge purpose. Rates are calculated based upon the origin and destination of the shipment.